• Floki Inu, a meme coin birthed by fans and the SHIB community, has seen tremendous performance over the past few hours after its governing DAO issued an important developmental proposal.
• The proposal aimed to burn an enormous number of its circulating tokens and reduce the tax that users pay for transacting on the network.
• Token burn is a means by which blockchain developers remove some coins permanently from circulation, aiming to reduce the total circulating token supply and increase the asset’s value.
In the world of cryptocurrency, there has been a recent development that is stirring up the market. Floki Inu, a meme coin birthed by fans and the SHIB community, has seen tremendous performance over the past few hours after its governing DAO issued an important developmental proposal. In order to understand why this coin is performing so well, it is important to know what it is and what this proposal is all about.
Floki Inu is a strict Shiba Inu competitor, hence the name “Shiba Inu-Killer.” Being the people’s cryptocurrency, it is governed by a decentralized autonomous organization, or DAO. This organization just issued a proposal to burn an enormous number of its circulating tokens. This proposal also aims to reduce the tax that users pay for transacting on the network.
Token burn is a means by which blockchain developers can permanently remove some coins from circulation. The purpose of this is to reduce the total circulating token supply, and, if demand does not change, this will increase the asset’s value. Reports stated that over $2 billion either got misplaced or stolen from cross-chain bridges alone in 2022. Therefore, the developers behind Floki Inu sought to take a proactive measure in order to increase security and reduce the risk of future hacks.
The proposal has been met with enthusiasm from the crypto community, as the token saw a massive price increase of 25%. Further, the proposal cites potential safety hazards associated with bridges as an additional reason to burn so many tokens. This is evident in the fact that the token has seen such a drastic jump in price. Floki Inu is definitely one to watch in the days and weeks to come, and the community is eager to see what the future holds for this meme coin.